The West Brom has reviewed its range of five year fixed rate mortgages for borrowers with smaller deposits or less equity in their current home.
While rates of interest remain the same, the Society has improved a number of cost-saving incentives, including cashback and the removal of upfront fees.
One of the biggest changes is the amount of cashback being offered to new purchasers who opt for the West Brom’s five year fixed rate mortgage of 2.99% at a loan to value (LTV) ratio of up to 90%. They will receive a £1,000 payment upon completion of the mortgage, double what was being offered previously.
This product, for loan sizes up to a maximum of £500,000, also offers a free first standard valuation and there are no booking or completion fees to pay.
Borrowers with a slightly larger deposit of at least 15% qualify for a rate of 2.59% fixed for five years, again with a free valuation and no booking or completion fees. Cashback of £500 is payable upon completion.
Remortgage products at both 85% and 90% LTV have also been refreshed. Completion fees have been removed, representing a £400 saving, and a free first standard valuation and fees assisted legals are provided. No booking fee is charged.
Borrowers will pay 2.54% (up to 85% LTV) and 2.79% (up to 90% LTV) in interest for the five year term. The maximum loan size is £500,000.
David Taylor, the West Brom’s Head of Products, said: “The West Brom is committed to supporting members who wish to purchase their own home by offering a broad range of mortgage products which deliver good overall value.
“We know that many of the borrowers opting for products at up to 90% LTV are buying a home for the first time. Reducing the costs associated with taking out a mortgage means they can focus instead on saving for that all-important deposit.
“Those borrowers qualifying for cashback can also put the payment to good use against other essential expenses, such as stamp duty where applicable, conveyancing fees or even furnishing their new property.”
The West Brom is the UK’s seventh largest building society based in West Bromwich in the West Midlands. Its new five year fixed rate mortgages are available from today (24 March) directly from the Society or via selected intermediary partners.
Each mortgage reverts to the West Brom’s standard variable rate at the end of the five year fixed rate term, which is currently 3.99%.